Netflix-Warner Deal Triggers Unease in Indian Entertainment Sector

India’s entertainment industry professionals warn that the consolidation of Netflix and Warner Bros. Discovery could disrupt the country’s theatre economy and intensify competition in the streaming market. Echoing the antitrust concerns in the U.S., Indian regulators anticipate the transaction would risk shifting premium global content further toward streaming-first releases at the expense of cinemas.

India’s cinema sector, which is still rebuilding footfall after the pandemic, sees the deal as potentially accelerating a trend toward shorter or bypassed theatrical windows. The Multiplex Association of India (MAI) has publicly cautioned that further erosion of theatrical exclusivity could weaken the economics of theatrical release, especially in tier-2 and tier-3 markets.

MAI President Kamal Gianchandani noted, “Warner Bros. has historically been a key partner to Indian cinemas, contributing consistently to our release calendar with successful global and local titles,” which would be disrupted after the deal goes through. He warns that it would not only impact revenues but also limit consumer choice and even weaken the film production ecosystem of India.

According to the executive vice-president and media sector analyst of Elara Capital, Karan Taurani, Netflix might bring the franchise films directly on streaming in India, since “the box office collection share from the Indian market” for these films is not significant for them. This would negatively impact Indian cinemas and affect earnings. 

As per Elara Capital’s report, for the country’s prominent cinema company, PVR-INOX, Warner Bros. Discovery’s content contributes 4% of its box office revenues, which is likely to be impacted after the merger.

Intensifying Streaming Competition in the Indian Market Due to the Netflix-Warner Deal 

If completed, the Netflix-Warner deal would rank among the largest media consolidations of the streaming era, echoing global precedents such as Amazon’s acquisition of MGM. The proposed $82.7 billion USD deal would consolidate high-end franchises like DC, Harry Potter, Casablanca, and the like, including HBO Max’s streaming library, into Netflix’s portfolio. 

This content library could intensify competition for India’s largest media conglomerate, JioStar. JioStar, formed in 2024 after the merger of Reliance’s Viacom18 and Disney Star, now captures 34-35% of TV viewership in the country and owns the JioHotstar streaming service. 

Netflix India, with a 16M user base, is already the country’s third biggest streaming service. After the merger, Netflix India would facilitate HBO Max’s titles, which are now mostly streamed on JioHotStar. 

According to Taurani, “JioStar will feel the pinch of Netflix becoming larger in content variety.” The company will be compelled to invest more in producing original content while forming partnerships with “smaller platforms” to stay in the competition. 

Other Indian streaming services, including Zee 5, Sun NXT, and Sony Liv, will also be affected. International streamers such as Amazon Prime could also face competition after Warner Bros.' content library becomes exclusive to Netflix.

Despite the challenges, a business strategist, Lloyd Mathias, anticipates that the intensified competition could be good for India’s entertainment industry. While the proposed deal would benefit the consumer market, he was quoted by a SCMOP report saying that if Netflix could bring “a lot of local production,” that would also benefit the production ecosystem of the country.

The unease surrounding the Netflix–Warner Bros. deal underscores a broader tension in India’s entertainment ecosystem: balancing global streaming consolidation with the sustainability of theatrical exhibition and competitive diversity.